Profitable ETF Trading Strategies: 5 ways that trading like a gardener will improve your results”
Gardening is a hobby, a craft and an art when practiced at the highest levels. It helps develops habits of mind and healthy attitudes towards your daily work that can be of great benefit in the high stress world of short term trading.
Here are 5 things you can learn from gardening that will help you to become a more effective trader.
1. The importance of design: A good design for gardening and for trading begins with the end in mind. You start with a vision of a successful end-state, and keep that firmly in mind as you proceed with monthly, weekly and daily plans to achieve your shorter term goals. By keeping the end in mind, your daily tasks and actions will be aligned with your ultimate purpose, both as a gardener and as a trader. It forces you to consider the longer term view when you feel rushed.
2. How to cultivate patience: Crops grow according to their own nature and in their own time. They can’t feel your impatience, and you quickly realize how foolish it is to try to force your will upon something that is unmoved by your timetable. The market is like that too, moving according to its own nature and schedule. Learn to feel the market rhythm and adapt your expectations and behaviors.
3. Appreciate the importance of timing: although we can’t rush the growing season, there is nevertheless a time for all things. Plan and prepare when it is time to do those things. Stalk when your targets are getting close, enter when it is time to act, and exit when your objectives are met or your rules indicate. Do things ion their own time and according to plan.
4. Know your natural limits: Know what your strengths and weaknesses are. Plan and implement a garden you can live with, and manage, and grow with; one that suits who you are. Your trading plan should be a reflection of your strengths and weaknesses too, so that you can reliably be just who you are. It’s very diifficult for the leopard to change his spots or the trader to change his ways. Learn to work within your strengths and offset your weaknesses with a good plan.
5. Know the seasons and your crops: By knowing your markets you will be able to align your objectives with what your preferred markets can be relied upon to provide,. Don’t ask markets and targets to do more than they naturally can or you will be forced into taking improper risks. Don’t put yourself in the position of arguing with the weather or Mother nature. Know your business and know your markets.
Trade like a gardener to improve your peace of mind and your bottom-line results.